The document summarizes a presentation on revamping the supply chain of a leading supermarket. It discusses opportunities to improve efficiency at the warehouse level through automation, barcode scanning, and warehouse management systems. It also addresses distribution optimization using GPS and hub-and-spoke models, inventory management with vendor-managed inventory and just-in-time approaches. Finally, it proposes solutions at the store level like mobile payment, product availability checks, and improved customer experience through in-store technologies and a stronger online presence. The overall goal is to enhance responsiveness, minimize costs and improve customer satisfaction across the retail organization's supply chain.

1. REVAMP
THE SUPPLY CHAIN OF
LEADING SUPERMARKET
PRESENTED BY BATCH ISCEA/PGDSCM/LK/16-08

2. Presenters
ISCEA/PGDSCM/LK/16-08/01 – Ayesha Jayasekara
ISCEA/PGDSCM/LK/16-08/02 - Prasanna Daranagama
ISCEA/PGDSCM/LK/16-08/03 - Achala Maduwanthi
ISCEA/PGDSCM/LK/16-08/05 - Upul Jayakody
ISCEA/PGDSCM/LK/16-08/06 - Chanu Halpage
ISCEA/PGDSCM/LK/16-08/07 - Amila Dissanayake
ISCEA/PGDSCM/LK/16-08/08 - Raveesha Kumarasiri

3. Introduction
• A well managed supply chain link with the suppliers,
manufactures, distributors, and customers
• Information system is source controlling across boarders
• Technology act on of main roll
• In order to achieve optimum productivity and overall
customer satisfaction.

4. Technology and Supply chain
What are the offers that IT offers
To keep and improve responsiveness
Satisfy customer needs
Minimize cost
IT is comparatively less capital intensive.
It is environmental friendly and clean.
It dose not require expensive infrastructure facilities.

5. Levels of Revamp
• Warehouse Level
• Distribution Level
• Inventory Level
• Stores level

6. Key Areas
Symptoms of a Warehouse in Need of Optimization
Identifying the warehouse work-flows as having the
biggest opportunity to reduce cost and gain efficiency
Improving Warehouse Efficiency
Eliminate Paper-Based Processes with Bar-coding
Benefits of Automated Data Collection with Bar-coding
Implement a Warehouse Management System
Benefits of a WMS
New picking systems to Improve Picking Speed, Accuracy and
Safety
Benefits of New picking systems

7. Symptoms of a Warehouse in
Need of Optimization
Inefficiency or inaccuracy is having a negative impact on the
warehouse
High rate of order errors and customer returns
Costly shipment errors that result in missed customer
expectations
Inefficient utilization of warehouse employees and space
Low morale among the warehouse workers and managers
Overstocking or stocking out of inventory items
Messy warehouse that can result in lost inventory and/or worker
injuries
Misplacing or losing inventory after it’s been received
Too many inventory counts

8. Identifying the warehouse work-flows as having the
biggest
opportunity to reduce cost and gain efficiency

9. Improving Warehouse
Efficiency
Eliminate Paper-Based Processes with Bar-coding
 Bar-codes
 Radio Frequency Identification or RFID
Benefits of Automated Data Collection with Bar-coding
 Improve accuracy
 Increase productivity
 Reduce labor costs
 Help leverage ERP system better
 Increase the tracking and traceability of products

10. Improving Warehouse
Efficiency
Implement a Warehouse Management System
Benefits of a WMS
 Enhance tracking and reporting on key warehouse
metrics
 Optimize routes employees take through the warehouse
 Utilize space more effectively in the warehouse
 Lower cycle times
 Increase the visibility of your inventory
 Speed up picking and fulfillment
 Meet the special demands of customers

11. New picking systems to Improve Picking Speed, Accuracy
and Safety
 RF Picking , Visual Picking , Voice Directed Picking , Pick
to Light , Horizontal Carousels , Automated
Benefits of New picking systems
 Tremendous accuracy
 Higher throughput
 Fewer injuries
 Faster training and learning
 More timely shipments
Improving Warehouse
Efficiency

12. Labor Productivity
Comparison

13. Distribution Level…

14. Factors to consider…
Nature of the product
Companies distribution / transportation policy
The type of market served
Geographical spread
Size and the type of the organization
Scale of the operation
Stage of the product life cycle
Competitor activities

15. Geographical Distribution
87%
2%2%5%2%2%
COLOMBO
GALLE
GAMPAHA
KANDY
KURUNEGALA
MATHARA

16. The necessities identified in existing
distribution system.
Efficient use of information and technology
Fast and Responsive system
Experienced drivers committed to customer service
Merchandise replacement system in less than 48hrs
Efficient vehicle routing resulting fuel efficiency and less CO2
emissions
Eliminating empty back hauls
Introducing GPS vehicle tracking and mobile technologies.

17. Applicable strategies and Technology tools
to fulfill the necessities
Milk Run Process
Direct shipping
Hub and spoke Model
Pool Distribution
GPS technology
The e-retailing
Training and development
Continuous research and development

18. Inventory Level…

19. Inventory Management
• Vendor managed-Inventory Model
Categorize the inventory
Three notable categories are,
1. Finished Goods Inventory
2. Buffer Inventory
3. Anticipation Inventory

20. Inventory Management
Just-in-time & cross docking method
Measures of inventory performance by using Technology
such as
• RFID, CPFR model
Three measures of inventory performance which are the most
significant;
• Inventory turnover
• Stock out-rate
• Inventory size
• ABC Analysis
• Inventory Information System

21. Store level….

22. Problems faced at the store level
Long queues – higher waiting time at the POS
Unavailability of the demanded stock
Difficulty in finding items
Abnormal fluctuations in the price leading to high menu
cost
Generalized experience for all customers
Higher number of competitors due to globalization

23. Solutions
Real-time updates
In-Store Experience
Check-out experience
Web availability

24. Real time update
RFID
Smart shelves with electronic price tags
Internet of Things

25. In-store experience
Interactive information kiosks with virtual map
Wi-Fi
Rating systems to help communicate opinions
In-cooperating lounges in to the store
QR codes to provide information on the product

27. Check-out experience
NFC featured payment methods (store cards) – contact
less payments
In-cooperation of software such as Android Pay or Google
wallet
BYOD – Bring Your Own Device
Retail application with pre-selected shopping list

28. Web Availability
Implementation of a web store in highly work populated
customers.
Retail application which provides up-to-date offers
On-line ordering with order tracking

29. In the end….
Customers should have a feel that there is a personalized
service
Channel partners know what items are needed at any
given time
Convenience to customers.
Knowledge passed back to channel partners with no bull-
whip effect
Transparency in the supply chain

30. OVERALL SUCCESS THROUGH
WARE HOUSE MANAGEMENT
• Eliminate Paper-Based Processes with Bar-coding
Increase productivity
Reduce labor costs
Increase the tracking and traceability of products
• WMS
Utilize space more effectively in the warehouse
Lower cycle times
Increase the visibility of your inventory
Speed up picking and fulfillment
Meet the special demands of customers

31. CONTINUE…..
• New picking systems to Improve Picking Speed,
Accuracy and Safety
Tremendous accuracy
Higher throughput
More timely shipments

32. OVERALL SUCCESS THROUGH
DISTRIBUTION MANAGEMENT
• Effective information system
• Fast responsive system
• GPS
• HUB & Spoke

33. OVERALL SUCCESS THROUGH
INVENTORY MANAGEMENT
• VMI
• Inventory Categorization
• JIT
• Cross Docking

34. OVERALL SUCCESS THROUGH STORE
MANAGEMENT
• Personalizing customer service
• Accurate stock levels
• In – app shopping
• Mobile Payment
• Improve web store
• Improve customer feed back and rating system

35. Where we were?
• Supply chain profile of the retail chain
Number of SKUs – 15,000
Number of warehouses – 2 distribution centers
Number of store locations – 100
Number of direct logistics employees – 200
Number of distribution vehicles – 55
Vendor profile – Large suppliers – 55
 Medium scale suppliers – 100
 Small scale suppliers - 60
Logistics cost – Rs. 50,000,000 per year

36. Where we are now?
1. Option 01
Number of SKUs >15,000
Number of warehouses – 2 distribution centers
Number of store locations < 100
Number of direct logistics employees < 200
Number of distribution vehicles <55
Vendor profile –
 Large suppliers > 55
 Medium scale suppliers <100
 Small scale suppliers - 0
Logistics cost < Rs. 50,000,000 per year

37. 2. Option 02
Number of SKUs - 15,000
Number of warehouses – 1 distribution centers
Number of store locations - 100 (at least 50% reduction)
Number of direct logistics employees - 200 (at least 50% reduction)
Number of distribution vehicles - 55 (at least 50% reduction)
Vendor profile –
 Large suppliers > 55
 Medium scale suppliers <100
 Small scale suppliers - 0
Logistics cost - Rs. 50,000,000 per year (at least 50% reduction)
Continue…

38. WALMART……………….

39. LEARNINGS WE TOOK FROM WALMART
• How they manage distribution?
 Bull Whip Effect
 VMI
• How they manage logistics?
 Cross docking
 Hub & Spoke
• How they manage inventory?
 Replenishment time optimization(no more than 48 hours)
 Truck fleet
 RFID
• How they manage storing?
 EDI
 E-business
 JIT

40. THANK YOU…